As of May 27, 2025, Reworld Media SA's estimated intrinsic value ranges from $2.46 to $11.27 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $7.38 | +367.4% |
| Discounted Cash Flow (5Y) | $6.50 | +311.6% |
| Dividend Discount Model (Multi-Stage) | $2.46 | +55.5% |
| Dividend Discount Model (Stable) | $2.78 | +75.9% |
| Earnings Power Value | $11.27 | +613.2% |
Is Reworld Media SA (ALREW.PA) undervalued or overvalued?
With the current market price at $1.58, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Reworld Media SA's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 1.27 | 1.83 |
| Cost of equity | 10.4% | 16.5% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 16.9% | 18.7% |
| Debt/Equity ratio | 2.03 | 2.03 |
| After-tax WACC | 6.2% | 8.2% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $7 | $476M | 73.6% |
| 10-Year Growth | $7 | $527M | 55.1% |
| 5-Year EBITDA | $3 | $297M | 57.6% |
| 10-Year EBITDA | $5 | $389M | 39.0% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $53M |
| Discount Rate (WACC) | 8.2% - 6.2% |
| Enterprise Value | $651M - $855M |
| Net Debt | $99M |
| Equity Value | $552M - $756M |
| Outstanding Shares | 58M |
| Fair Value | $10 - $13 |
| Selected Fair Value | $11.27 |
| Metric | Value |
|---|---|
| Market Capitalization | $92M |
| Enterprise Value | $191M |
| Trailing P/E | 3.94 |
| Forward P/E | 3.47 |
| Trailing EV/EBITDA | 4.35 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 2.03 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $2.22 |
| Discounted Cash Flow (5Y) | 25% | $1.63 |
| Dividend Discount Model (Multi-Stage) | 20% | $0.49 |
| Dividend Discount Model (Stable) | 15% | $0.42 |
| Earnings Power Value | 10% | $1.13 |
| Weighted Average | 100% | $5.88 |
Based on our comprehensive valuation analysis, Reworld Media SA's weighted average intrinsic value is $5.88, which is approximately 271.9% above the current market price of $1.58.
Key investment considerations:
Given these factors, we believe Reworld Media SA is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.